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5 ways to boost your holiday let profit

5 ways to boost your holiday let profit

When it comes to landlords and investors, we’re always looking for new ways to increase the value of our properties, thus further increasing the rental prices we can offer enabling a greater overall profit. Everyone wants to stand out from the competition and capitalize on the maximum amount of possible income, so why not boost your holiday let as much as possible to ensure that? The tips digressed upon within this article will help you boost your holiday let profit and will help you stand out from the competition.

  1. Have a flexible pricing strategy

By simply enforcing a flexible pricing strategy you could greatly increase your overall profit margins. Sites like Airbnb offer flexible pricing models such as paying 50% on reservation and the remaining 50% a couple days before arrival. Flexible plans like this on average increase profit by 12% in comparison to other holiday lets that don’t offer the same flexibility.

An extra tip for those who are more lenient and want to marginalize?? more is to extend cancellation dates and policies. Not only will this attract more customers, but it will also make them feel safer to reserve one of your holiday lets due to the extra level of flexibility in case of a change of plans or an emergency. This in turn will help boost your booking occupancies and would help instill a degree of trust, thus helping to boost your profit.

  1. Spend money where it matters – make it count!

Holiday lets which have well-equipped kitchens and bathrooms are an essential component to any good let and always perform better than others. Upgraded perks like a fully integrated kitchen, high-pressured showers and easy-to-clean wooden/stone floors offer an attractive dwelling for guests to indulge in.

One of the best things about spending money on your property is that you can deduct the costs from pre-tax profits if your home successfully qualifies as a furnished holiday let, helping to stretch your income even more.

Why not invest a little more and indulge in some luxuries for your guests (and you) to enjoy such as a high-quality wooden hot tub, Netflix, high-quality speakers or a good quality barbecue which would easily increase the value of your holiday let per night. These are easily some luxuries that you’ll be able to pay off in no time.

  1. Make it appeal all year-round

Alongside upgrading and even possibly doing a little renovating to you holiday let – making sure it appeals all-year-round is a surefire way to boost your profit. An easy tip on how to attract guests throughout the year is to allow shorter breaks – something that will easily boost your income by an increased occupancy rate percentage.

Why not add some marketing to your holiday let listing – if you’re targeting your stay as a ‘romantic getaway,’ try and create spaces around your let that follow in line with that theme. Adding a dedicated and cozy living space with a log burner or fire could greatly enhance the appeal of your holiday let.

“Properties with open fires earn an average of 14pc more, according to Sykes, while Jess Clark, of upmarket rentals agency Unique Homestays, said wet weather facilities such as games rooms and cinema rooms allowed owners to charge more.” (Telegraph, 2021).

  1. Accept Pets

Whilst it’s true that many holiday let owners are more reserved about allowing pets due to the increased amount of wear and tear – it serves to be a significant revenue increase and could generate up to 18% more booking and profit in the long run than those which are not pet-friendly.

If you do decide to open that option, be sure to let your guests know about the rules in place and the consequences if damage is done to the property. Thorough inspections before and after a guest stays should be carried out so you can keep an eye on any areas of the holiday let which raise concern or have been defected. If this is too much hassle, instructing a management company can ease the workload and ensure your property stays in show-home conditions at all times.

  1. Create a mini-workstation space

With more people working remotely due to the onset of the pandemic, around one in five people are likely to work on holiday, therefore it’s imperative to cater for nomads and provide a workstation to increase your profit margins.

You can increase your income by 16% just by ensuring you have a strong and stable WIFI connection throughout the holiday let – bonus points for those who create a dedicated workspace, suitable lighting and good internet connectivity for their guests.

For those looking to specifically target digital nomads and businessmen/businesswomen alike, consider investing in some workspace luxuries for your holiday let such as a good printer and coffee machine.

To summarise, we’ve gone over some of the best tips on helping you to increase your profit margins by boosting the appeal of your holiday let. If you’re looking for more tips on maximizing the value of your property or are looking for some extra guidance, feel free to contact us now at: 0116 232 5129 or email us at: info@big-roar.com. 

At Big Roar we pride ourselves on our excellent quality of customer care and services- that’s why we offer a no obligation free zoom consultation for all of our loyal clients and future customer. To find out more contact us now.

The top growth property hotspots – 24/08/21

The top growth property hotspots – 24/08/21

New studies have emerged with analysis of over 600 areas across the UK, taking into consideration factors such as house price increases, search engine results and market research, to assess the most popular locations sought by investors and property-hunters. In today’s article we will focus on the top 5 growth hotspots in England.

Wallasey and Liverpool, Merseyside

Wallasey is a village within the metropolitan borough of Wirral, in the county of Merseyside, England. Property developers and estate agents are noticing increasing interest from house buyers and investors in areas such as Wallasey and Liverpool.

Some of the most expensive houses sold in Merseyside reside in Wirral, Sefton and south Liverpool. One of the most recent and expensive properties, a detached house in Wirral, sold for an impressive £2,250,000 on July 29th 2021. According to Rightmove (2021), the average asking price for houses in Wallasey sat at £176,707 in March 2021, which shows an annual increase of 15.6% from the prior year – roughly under £24,000 higher than a year ago.In comparison, properties within the city centre are currently some of the least expensive properties on the market, attracting property investors and prospective buyers due to its prime location couPed with affordability.

The recent property boom and spike in interest can be attributed to recent regeneration projects such as Liverpool’s stunning £14 billion regeneration project, which includes plans to deliver over 10,000 new homes alongside a cruise terminal, film and TV hub. This new renaissance led project aims to renovate over £250m of road infrastructure with an additional 2 million sq ft of commercial office space.

Further plans include projects for Liverpool FCs new main stand development, Kings dock area and the proposal for a new stadium for Everton FC. This amazing regeneration project will create a wealth of opportunities including increased amenities for residents and tourists, in addition to a sharp increase in job opportunities to help boost the overall economy.

With the addition of these new projects, Liverpool and other cities and boroughs within Merseyside are on the path to become some of the biggest property hotspots attracting buyers from all over the UK.

Penzance, Cornwall

Penzance, a civil parish and port in the Penwith district of Cornwall is also one of the most upcoming property hotspots within England, with a striking 12.5% increase in asking prices since last year. The average asking price was reported to be £280,102 in March 2021 and is set to keep increasing alongside market trends with its overall popularity for home seekers.

The town is set to undergo a £10.4 million investment following a successful Cornwall Council bid to the Governments Future High Street Fund. The new revitalisation proposals will help to redevelop the town’s housing, workspace and vacant high-street properties, with future plans to expand and build an all new creative industries hub in the centre of town.

Cornelius Olivier, Cornwall Councillor for Penzance Central commentated on how the plans will help strengthen and diversify the economy, helping the town of Penzance to rely less on seasonal visitors while meeting housing need demands.

It’s no surprise that more people are noticing the potential of the town and looking to relocate to Penzance, consequentially contributing to its booming property market.

Wigan, Greater Manchester

Greater Manchester’s town Wigan is due to be one of the biggest and unrivalled property locations within the market due to the extreme transformation the town is undergoing. Wigan has already seen an amazing 11.57% growth in asking prices since last year, equating to an increase of nearly £20,000. The average asking price is currently £175,202, which has scaled up incredibly from last year’s price of £157,031.

Prices are set to increase following the commencement of regeneration projects, such as Wigan’s £130m town centre revitalisation, with proposed plans to redevelop and modernise the area, injecting it with a breathe of vitality into what was once renowned for its Galleries shopping centre – a shopping complex divided into three sections originally created by combining three independent schemes.

This £130m regeneration plan will completely transform the town of Wigan and benefit the wider borough within the next 5 years. Proposals for the plan include a hotel, a six-screen cinema, music and e-sports venues, a 10-lane bowling alley, a mini-golf centre, evening entertainment amenities and a plethora of restaurants and bars. The site boasts 440,000 sq ft space to accommodate 464 new homes with the addition of a new market hall, small office spaces, co-working spaces and a re-animated Makinson Arcade.

This stunning regeneration project has further plans to build a public square with luxury landscaping to include an additional 460 car parking spaces. This amazing regeneration project will create a wealth of job opportunities including a projected 475 construction roles and an additional 190 jobs created upon completion of the redevelopment.

The city of Manchester has plans to further revitalise the town helping to boost the overall economy and quality of life for its residents and tourists, enabling it to flourish as a buy-to-let hotspot and prime location for home-seekers and property investors.

Wednesbury, West Midlands

Residing within a large market town within the county of West Midlands, Wednesbury is on the rise and has been identified as one of the top property hotspots for growth in England. The town has seen an incredible 12.2% growth in asking prices since its prior year – with asking prices in excess of £172,753.

Significant regeneration plans are underway in the town of Wednesbury, including restoration of transportation links, town centre and residential developments. Further projects aim to deliver improvements to shop fronts, public realm and social and cultural programme activities within the town. “Alongside this, there is the development of residential sites within Friar Park; following the completion of Carisbrooke Crescent housing site in June 2019, 2020 sees the initial developments of the Carrington Road area and plans for 750 new homes on Friar Park Road.” (Sandwell Council, 2021).

Awarded with an £8M regeneration fund, Wednesbury is set to experience increased foot traffic, higher quality of life for its residents and visitors alongside increasing house prices, offering a lucrative investment opportunity for property investors and home buyers.

Birmingham City Centre

As the demand for Birmingham city centre housing continues to increase, we are seeing buyers gravitate towards properties that are not only impressive but also offer high ROI yields.

Birmingham is one of the biggest property hotspot locations and is set to see a 24% growth in rental and property prices over the next 5 years.

The average asking price for semi-detached properties in Birmingham boast a 10%+ growth compared to the previous year, increasing from £263,194 to £289,528 in a year – a growth of nearly £20,000.

With the onset of redevelopment projects and increasing property demands within the city centre, Birmingham’s asking prices are on course to increase in the coming years, improving profitability of the city’s property market while providing a boost to the overall economy. Buy- to- lets and serviced accommodation properties are proving to be one of the most popular trends within Birmingham’s property market in recent months.

Now more than ever, property investors and developers are looking to take advantage of the substantial ROI resulting from the upcoming regeneration projects by expanding their investment portfolio before inevitable price increases occur. Now would be a prime time to be an early investor in this area before the market becomes increasingly competitive and saturated.

To book a free consultation with one of our highly experienced property sales consultants to discuss your financial needs and objectives, please follow the link https://calendly.com/rknight1 so we can arrange a time to meet with you, discuss your investment needs and devise an action plan to move your investment journey forward.

Alternatively, please email us at info@big-roar.com or call us on 0116 232 5129 to speak to one of our advisors.

Big Roar are looking for sub-agents

Big Roar are looking for sub-agents

Big Roar are offering an exclusive opportunity for you to partner with us and have a chance to earn fantastic commission rates on high quality investment stocks.

Why you should work with us?

Big Roar is a boutique sales and marketing company that specialises in property investments both in the UK and abroad, that help to source premium real estate on behalf of our clients.  Our entire business model is designed around sourcing highly profitable investments to our clients in order to build loyalty, trust and synergy.  We focus on building a large network of clients, who will continue to utilise our services for many years as their primary source to find property investments both in the UK and internationally.  Longevity and sustainability are key to the success of Big Roar as a company.  We see our clients as partners and our strong ethics mean you can be rest assured, you have found a sales and marketing company who has your best interests at heart.   

We at Big Roar offer exclusive benefits to our partnered agents inclusive, but not limited to:

  • Excellent commission rates
  • Over 2,000 units in the pipeline
  • Full white-labelled marketing assets
  • Full training and support
  • Full after sales service
  • Experience investment firm
  • Innovative marketing team
  • UK and overseas investment projects
  • 80+ Years of collaborative experience

Big Roar have a pipeline in excess of 2,000 property units across the UK and overseas including completed and scheduled projects with pending dates in the next 1-3 years. Big Roar are dedicated to giving you high yield opportunities, focusing on growth and capital gain on all of our projects.

Products are packaged with the end investor in mind, ensuring a healthy return, capital growth and support at every stage of the journey. With our extensive experience, our team has a combined total of 80+ years worth of experience across multiple sectors, specifically within property development, sales and marketing. In addition to this, our team have been involved in hundreds of deals, allowing us first-hand experience of every stage of our partners’ experience.

With the emerging rise and changing natures in property development, Big Roar have adapted and acclimated to develop a dynamic portfolio of prime developments. Big Roar have a range of current and upcoming investment opportunities to suit all needs, with our most popular investment opportunities centred in the prospering hotspot locations of areas such as Birmingham, Manchester, Norfolk, Lincolnshire and more.

Our loyal team at Big Roar are committed to providing a personalised service every step of the way of your agent journey. We are on hand to provide quality training, sales, marketing and property investment support, amongst a range of other assistance.

We at Big Roar are looking for a range of talented and ambitious individuals, who are self-motivated in nature to help partner up with Big Roar and join our diverse team. We are looking for agents that want exclusive opportunities only available at Big Roar with generous commissions and a plethora of investment units in the UK and abroad. The invaluable support and training provided will enable you to develop into one of our elite property agents and offer you a range of premium opportunities.

If you would like a chance to partner up with Big Roar, please contact us at marketing@big-roar.com, or call us on 0116 232 5129 for further details on our fantastic partnership opportunity.

Manchester Regeneration: Wigan’s £130m town centre Development

Manchester Regeneration: Wigan’s £130m town centre Development

Manchesters’ large town Wigan is currently undergoing an astonishing £130m town centre Development with new images released on what civilians can expect.

The £130m development plans aim to revitalise the area and completely modernising it, giving it a breathe of vitality and life from what once was harboured by the Galleries shopping centre – A shopping complex divided into three sections formed with three formally independent schemes. Wigan council had purchased the 3 independent schemes; The Galeries Shopping Centre, Marketgate Shopping Centre and The Makinson Arcade back in 2018 for £8m.

In correlation to market trends, the local authority seek to repurpose the site with the onset of many high street retailers closing and people shifting towards an e-commerce based society.

This £130m regeneration plan will completely transform the town of Wigan and benefit the wider borough within the next 5 years. Proposals for the plan include a hotel, a six-screen cinema, music and e-sports venues, a 10-lane bowling alley, a mini-golf centre, evening entertainment centres and a plethora of restaurants and bars. The site, encompassing 440,000 sq ft plans to build 464 new homes, with the addition of a new market hall, small office spaces, co-working spaces and a re-animated Makinson Arcade.

Further plans encompass a landscaped public square with 460 car parking spaces, creating a wealth of jobs and opportunities for the general public helping to boost the overall economy of the borough. The local council has confirmed that they will be providing a plethora of job opportunities for local workers, youth apprenticeships, construction jobs and local suppliers as an addition to the project. An expected 475 construction jobs are set to be created with an additional 190 job opportunities created upon completion of the redevelopment.

This 5 year regeneration project has a total estimated cost of around £130m cultivated from a mixture of private sector investments, grants and council funds. The local authority hopes this project will help increase footfall whilst providing a better experience of the town for residents, visitors and businesses. The council also hopes this plan will drive economic growth, benefitting the entire borough.

This project is set to improve the overall economy of Manchester and is said to contribute to Manchesters’ increasing rental market prices, overall increasing profit margins for buy-to-let investors and landlords. For a chance to find out how you can benefit from investing in Manchesters’ rental and investment properties and claim your free consultation with one of our highly experienced property sales consultants, please follow the link https://calendly.com/rknight1

GROWTH IN CITY CENTRE HOUSING MARKET

GROWTH IN CITY CENTRE HOUSING MARKET

City Centre Property Investment

The housing market has always been evolving and is constantly displaying different buying pattern cycles. More evidently, the housing marketing is a direct representation of the changing attitudes in society, mimicking the different trends at present.

Now more than ever, we’re seeing a strong demand for first-time buyers, especially in the city centre. City centres such as; York, Norwich, Leicester, Leeds, Birmingham, Manchester and Liverpool are demonstrating a high level of increase in buyer demand, proving to be some of the most sought out locations within the property market. For some of these locations, buyer demand has increased by an astounding 76% from January 2021. The increase in appeal for city centres demonstrates the easing of covid restrictions and exhibits a steadily increasing economy. This growth has led to the ideal opportunity to invest in City Centre property investment. 

Despite these changes in buyer demand, the asking prices have remained steady and have shown up to a -4% change in asking prices when looking at April 2021 vs January 2021 figures, helping to enable city centres to be more affordable in the long run. An example of this would be Leeds, with an average asking price of £166,760 in January 2021, which displayed an average asking price of £159,972 in April 2021, showing a -4% change.

Buyer demand patterns have shown an increase in the demand for flats, illustrating an impressive +39% increase, with bungalows following shortly behind at a +30% change in buyer demand. Detached houses have increased by 26%, Terraced houses show a 24% increase and semi-detached houses feature a 23% increase. Big Roar has property investment opportunities in both luxury city centre apartments in Birmingham, Manchester and the East Midlands alongside a new build housing development situated in Norfolk – a perfect addition to any buy-to-let property investment portfolio.

City Centres Overtake Rural Demand in property 

City centres are proving to have strong levels of demand as opposed to rural areas. The highest average jump in city centre demand stands at 35%, in comparison to a 32% increase in demand for prospective tenants looking to move to country side and costal locations across the UK.

“Similarly, if you look at all urban locations and all rural locations across Great Britain, the growth in buyer demand for urban locations is now outperforming the growth in rural areas for the first time since before the pandemic started.” (Rightmove, 2021).

Andy McHugo, Associate Director at James Laurence Estate Agents in Birmingham, says: “The fear caused by the announcements of further lockdowns at the beginning of the year was that the need to live in the city, close to your workplace and close to the bustling financial district would be affected, something Birmingham experienced back in 2008 with the market downturn when the city got hit harder than most. Nothing could be further from the truth now. Not only are enquiry levels fantastic, committed residential buyers are now returning. The dynamic may have changed slightly, so apartments with balconies or terrace are proving popular, as are those with room for a home office, a second and third bedroom for example.” (Rightmove, 2021).

First-time buyer demands

The governments implementation of a new 95% mortgage guarantee scheme paired with virtual standstill, which was put into motion in April 2021, has already proven to be popular, helping enable first-time buyers get their foot in the property market.

Buyer patterns have show that 17% of first-time buyers are already using or will be using the 95% mortgage guarantee scheme, with Over a quarter of homeowners (28%) are hoping to move to the countryside or coast, compared to just 10% of first-time buyers” (Rightmove, 2021).

With the UK’s plan for slowly easing out of lockdown, buyer demand is expecting to increase for city centre locations, with particular interest in locations inclusive of; York, Birmingham, Manchester, Liverpool, Leicester and Norwich.

STUDENT ACCOMMODATION INVESTMENT

STUDENT ACCOMMODATION INVESTMENT

Student Accommodation Investment

The term ‘Student Accommodation’ is relatively self-explanatory. It refers to a university or college residence containing living quarters for students. Alternatively, some third party organisations outside of the university arrange living quarters in central locations around hotspots which host a range of students each from different universities.

With the ever-increasing rise of students choosing to go to university, the rental demand for university accommodation has surged. In 2019/20 there were 2.46 million students at UK higher education institutions, demonstrating a strong 10%+ growth in student numbers since 2012.

To further add, 2020 was a year of extreme growth within student accommodation investments. A grand total of £5.77 billion was invested in purpose-built student accommodation (PBSA), demonstrating a 5.7% increase from 2019. Overall investments were 0.8% higher than they were in 2015, setting off new records.

Why should I invest in student accommodation?

Although COVID has had a detrimental affect on all sectors within the market, UK higher education still remains a highly attractive option for both national and International students, evidently shown by the 8.4% increase in UCAS applications in 2021. This all contributes to the high in-demand figures for student accommodation, which remains a lucrative investment to date.

High Return On Investment Yields (ROI’s)

With the high figures of new students starting full-time education, the rental market for student accommodation is constantly on the rise. The average student rent in the UK stands at £126.42 per week, yet varies according to location. Those within London have an average weekly rental rate of £150 per week, whereas areas around Newcastle spend far less cultivating to an average of £108 per week. Rental yields differ in accordance to location, which is why it’s imperative to research the market before investing, however, rental yields for student accommodation can go as high as 7.2%+ as reported from The University of Dundee in Scotland.

To further commentate, The University of Aberdeen and Strathclyde had rental yields of 6.8% and 6.62%, illustrating the profitable yields student accommodation can bring forth. Overall, across the UK the average rental yields sit at around 4.4% which is pretty high considering the low investment price for student accommodation in comparison to those of a house.

Other buy-to-let student accommodation investments within UK hotspots such as Birmingham provide a lucrative 6.5% yield, with Leicester being one of the highest yields in England displaying yields of 6.56%. Close yields are featured in cities like Nottingham and Newcastle, both which sit at 6.39% and 6.3%. Whereas Liverpool and Manchester average 6.1% and 5.2% respectively.

For those looking for higher investment yields, investing in student accommodation HMO’s tend to perform significantly better than single room investments. This is based on the fact that you can charge the same rental rates for multiple students towards the whole house in comparison to charging one person solely off of a room. HMO’s produce high lucrative yields of around 11% or higher depending on location.

 

Low Risk Investment Prices

An extremely advantageous point to remark on about student accommodation is that in general these properties are low-level investments with prices starting as low as £40,000. Even with low investment prices, these properties offer lucrative rental yields to contribute to your overall passive income. A large amount of beginner Investors feel more secure by investing in entry-level investment opportunities, which offer low-level risks as their entrance into the property and investment sector.

Strong Sector

As more and more students decide to start and continue university degrees and programmes, the demand for student accommodation increases. Within the property sector, the demand will always surpass supply rates, therefore demonstrating the fact that the sector remains strong and viable within its positioning in the property market. Benefits such as these contribute to the fact that student accommodation offer a low-risk investment opportunity as there is always a wealth of students needing accommodation in university hotspot locations.

The Best Places To Invest In Student Accommodation

A key factors which will affect the rental yield of your investments is solely based on location which is why it’s imperative you research prior to making any decisions. As a general rule of thumb, properties within major cities tend to provide the most lucrative investment yields. However, when looking for student accommodation investment opportunities it’s best to base your location on cities in which have the highest rates of students across the UK as the demand will be stronger. The key student accommodation hotspots include:

  • Brighton
  • Nottingham
  • Birmingham
  • Leicester
  • London
  • Aberdeen
  • Edinburgh
  • Coventry
  • Glasgow

The potential downsides to student accommodation

As with all investment opportunities, it’s necessary to weigh up the pros and cons before making a decision. Student accommodation investment opportunities are no different in that regard and will sometimes host a range of cons that differ from a typical single family house investment opportunity. The potential pitfalls of investing in student accommodation include, but are not limited to:

Property Damage – Houses and rooms hosting students tend to face more wear and tear, as opposed to a single family house. A positive to this is that many students need to put down a deposit which they will be given upon leaving the property minus any surcharges for property damage.

Higher Levels Of Management – Close management is required for properties such as these, due to the nature of the tenancy agreement. Luckily, many investment opportunities like ours are fully managed, offering you a hands-free and hassle-free opportunity whilst we take care of management.

Consent & Licenses – Caution and research is required for these types of investments as they usually need extra set-up, licensing and planning consents granted, especially in regards to HMO’s.

School Terms – Another key thing to consider is that properties are mainly occupied from September to June/July for single room student accommodation. Summer periods in general will face lower occupancy levels.

However, many HMO properties tend to offer all-year-round tenancy agreements which rectifies this issue.

Conclusively, we have touched on the major aspects towards investing in student accommodation along with the plethora of advantages and the potential pitfalls towards these investment types. It’s always worth consulting an advisor and researching prior before committing to any investment. For your chance to book a free consultation with one of our highly experienced property sales consultants to discuss your financial needs and objectives, please follow the link https://calendly.com/rknight1 so we can arrange a time to meet you and set an action plan going forth.

Alternatively, please email us at info@big-roar.com or call us on 0116 232 5129 to speak to one of our advisors.

Big Roar is a boutique Property Investment company with a wealth of experience that offers high quality in demand investment opportunities in the UK and worldwide. The aim is to deliver unique property developments either through developer led investment or providing pre-launch or off-market access.  

2021 has seen a period of great transformation and growth which has enabled our company to grow and diversify from the traditional property investment model allowing us to launch our Sub-Agent product – allowing individuals and companies to utilise our skills and experience to on sell our wide and diverse portfolio to their own networks and wider audiences.  

Our focus is you. Each investment we launch is rigorously assessed by our in-house team of analysts, and our Portfolio Management team monitor the progress of each project, updating both investors and the developers providing you with a truly hands-off investment experience.

Whether your requirements of new property or off-plan developments for resale of buy-to-let, or high yielding rental properties that will serve well in either the serviced accommodation, short-term or long-term let market, we have complete confidence and proven results to ensure you receive exceptional return on investment.